Answer:
Market Principal notes that there should be no arbitration in the efficient market unless there is some arbitration so an efficient market system can quickly neutralize the situation.
The futures market for May, in the example above, is trading at $3.82 while the spot price is $3.45. The spot price month is listed but carriage costs and transportation are given as $0.20 and $0.03 per month.
This gives us a total price of $3.68 and this means the futures market is priced at a premium of $0.14.
3.82-= 0.14 (3.45 + 0.20 + 0.03)
This is not normal, of course, and traders will start shortening futures prices when going on the spot contracts for long. This would drive down the price of the futures while increasing the spot price, which should stabilize at $3.75.
Nevertheless, it is necessary to remember that in such equation there is also a borrowing fee which must also be taken into account. If the interest rate is 6 percent a year so it also takes into account a monthly finance fee of 0.5 percent of the contract value.
The major change I made was on change in my diet during quarantine days.
- I observed that there was a huge gain of 15kgs in my body after quarantine days.
- I tried to change my daily routine to come back in shape.
- I made a strict cut on fries, burgers, pizza, and other unhealthy stuff and adopted boiled vegan diet.
- I drew some time from my strict office schedule to work on exercise during morning hours by skipping my sleep and worked out on gym during evening.
- In a week I experienced a sharp drop of 4kgs. This was the expected biggest change after quarantine.
Learn more about routine:
brainly.com/question/17597488
Answer:
C) dividends
Explanation:
Taxes reduce the corporation's income and therefore it also reduces the amount of money returned to investors.
Retained earnings is the amount of net income left after dividends have been distributed and they are used by the corporation to finance new or existing projects. The higher the retained earnings the corporation needs, the lower the dividends it distributes.
